Supreme Industries to Divest Shuttle-Bus Business
December 31 2013 - 8:30AM
Business Wire
Supreme Industries, Inc. (NYSE MKT: STS), a leading
manufacturer of specialized commercial vehicles including truck
bodies, trolleys, armored and specialty vehicles, today announced
that it intends to divest its shuttle-bus business.
Supreme’s core business of manufacturing and selling customized
truck bodies has recently undergone successful facilities and
manufacturing upgrades resulting in enhanced operating efficiencies
and margins for these products. Shuttle bus products currently
represent less than 12% of the Company’s consolidated sales and had
a materially adverse impact on consolidated earnings in 2013. The
divestiture is intended to further expand profit margins on a
consolidated basis.
“As a proportion of revenue mix, bus products have represented a
declining percentage of our sales and shuttle buses, in particular,
have failed to meet profitability objectives,” said President and
Chief Executive Officer Mark Weber. “This action allows us to
concentrate on markets where we can maximize future returns for
shareholders and eliminate the substantial drag on earnings from
the shuttle bus business.”
“We remain committed to the trolley business,” he added.
“Furthermore, to avoid disruptions for our shuttle-bus customers,
we plan to assist the future owners with a swift and orderly
transition. This approach will optimize the value of the business
and benefit all constituents including the new owners, customers
and employees.”
Additional information will be provided when the Company
releases its fourth-quarter and full-year 2013 financial results in
February.
About Supreme IndustriesSupreme Industries, Inc. (NYSE
MKT: STS), is a nationwide manufacturer of specialized truck
bodies produced to the specifications of its customers. Supreme
also manufactures armored vehicles and trolleys. The Company's
transportation equipment products are used by a wide variety of
industrial, commercial and law enforcement customers.
News releases and other information on the Company are available
on the Internet at: http://www.supremeind.com or
http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0.
Other than historical facts contained herein, the matters set
forth in this news release are “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act, as
amended, and reflect the view of management with respect to future
events. When used in this report, words such as “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan” and similar
expressions, as they relate to Supreme or its plans or operations,
identify forward-looking statements. Such forward-looking
statements are based on assumptions made by, and information
currently available to, management. Although management believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that the expectations
reflected in such forward-looking statements are reasonable, and it
can give no assurance that such expectations will prove to be
correct. Important factors that could cause actual results to
differ materially from such expectations include, without
limitation, an economic slowdown in the specialized vehicle
industry, limitations on the availability of chassis on which
Supreme’s product is dependent, availability of raw materials, raw
material cost increases and severe interest rate increases.
Furthermore, Supreme can provide no assurance that any raw material
cost increases can be passed on to its customers through
implementation of price increases for Supreme’s products. The
forward-looking statements contained herein reflect the current
view of management with respect to future events and are subject to
those factors and other risks, uncertainties and assumptions
relating to the operations, results of operations, cash flows and
financial position of Supreme. Supreme assumes no obligation to
update the forward-looking statements or to update the reasons
actual results could differ from those contemplated by such
forward-looking statements.
Supreme Investor RelationsMatthew J. Dennis, CFA,
574-228-4130
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